Want to borrow more with debt

Elephantchunks

Hi,

So we have decided we need to borrow an extra £20,000 on top of our existing mortgage (for a re-wire, boiler & roof work).
We have this in equity plus 10% so that part is fine.

When filling in the form on the banks website and declaring that we pay £384 per month on a loan (until Feb next year) the computer says no. (affordability I guess).
When not entering this in the loan section but instead putting £4404 into the credit card section instead - Computer says yes.
Are credit cards seen as different?
Should we move our debt to a 0% credit card? I have this available on my card.
Will this new debt hamper our chances of being accepted?

We also get £380 rent from a lodger who stays in a room in our home. There is nowhere to put this on the form as it only asks about rent from 2nd homes. If I put this into one of these boxes then computer says yes.

If we have a meeting at the bank will they fill in the same form as me and say computer says no? Or will they take this information into account?

Thanks in advance for your advise

ACG

Credit cards are assessed for affordability as a percentage of the balance - typically around 3% so on £4404 the lender is assessing your commitments as £132 a month rather than the £384 you are paying.

Elephantchunks

You star! Thank you for your knowledge & reply!